An increase in which of the following would shift IS to the right and AD to the left?
A) price level
B) government spending
C) investment
D) none of the above

Question

Quizplus · Accepted Answer

An increase in the price level would shift the AD curve to the left, not the IS curve. Increases in government spending and investment would both shift the IS curve to the right and the AD curve to the right as well, contrary to the scenario described. Therefore, none of the options provided would cause the IS curve to shift right and the AD curve to shift left simultaneously.

An Increase in Which of the Following Would Shift IS